Comparison of Bitcoin vs. stocks: price movements

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Recently, Binance published an extensive study of how Bitcoin price movements have performed against the variation in the world of stocks. Since the beginning of 2020 there has been talk of a growing correlation between the two, but this time Binance gives the data.

Specifically, in this study they compared the evolution of certain traditional stock market indicators with the performance of BTC.

Before the rise of Bitcoin, the stock market had been the platform chosen by people who wanted to grow their asset portfolios. So, understandably, when Bitcoin emerged as a fast-growing replacement with comparable potential and volatility, the conversation turned to crypto-currencies.

The truth is that the Bitcoin self-contradiction is what was promised in 2009 or not, continues. This refers to the premise that in the face of a global economic crisis, Bitcoin would act as an almost 100% safe haven asset.

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Comparison between Bitcoin and NASDAQ 100 and S&P500 stocks
In this evaluation conducted by Binance, we compared Bitcoin’s performance with the NASDAQ 100 and S&P500.

The S&P500 is an index that reflects the performance of the shares of the top 500 U.S. companies. The NASDAQ 100 is an index that tracks the top 100 U.S. companies.

There they comment that if someone had invested US$ 1,000 at the beginning of 2020 they would be worth US$ 1,660, while on NASDAQ they would be worth US$ 1,265 and US$ 1,029 in the case of the S&P500. Of course, prices fluctuate from day to day, but this is just one of many cases that show the competitiveness of Bitcoin as an asset.

This comparison didn’t stop there. The Binance study also comments on the comparison of some „top tier“ stocks with Bitcoin and two other popular cryptosystems: Ethereum (ETH) and BNB.

One of Binance’s main conclusions after making this table is that only in the year 2020, crypto currencies can come face to face with some of the best blue chip stocks in the market. All this in the middle of a context as challenging as the one we are currently living with the COVID-19 pandemic.

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Advantages of deciding to bet on BTC according to Binance
After making this general comparison, Binance argues that investing in cryptomonies and Bitcoin Lifestyle is more accessible considering that to access them you don’t even need to buy them on the market. In this part they comment on the possibility of obtaining BTC through group mining as it is done in Binance Pool. In contrast, the only way you can get additional shares in a company is if they initiate a stock split in their holdings.

However, this isn’t the only voice that recommends investing in Bitcoin these days. Recently, Mike Novogratz and Dave Portnoy did something similar. In their case, the comparison they made was to gold.

Recently, with the rising price of Bitcoin, these estimates may be even better than the exchange and investors like the ones mentioned above.

These investors have decided to test the theory that portfolios containing Bitcoin and other crypto currencies generally outperform portfolios without crypto currencies. So far they don’t seem to regret their position.